Bangladesh’s economic landscape is facing mounting challenges as high interest rates and ongoing political and financial uncertainty dampen demand for loans and stifle investment. Credit growth in the private sector has hit a 42-month low, reflecting the country’s broader economic struggles.Interest rates have surged to 14-15%, which has led to a significant reduction in businesses ...more

A massive financial scandal has unfolded involving the embezzlement of approximately Tk 1114 crore from the Islami Bank’s Jubilee Road branch in Chittagong, Bangladesh. The fraud, perpetrated in the name of loans, is led by Ahsanul Alam and Ashraful Alam, the sons of Mohammad Saiful Alam, Chairman of S Alam Group.In a span of just ...more

Bangladesh Bank has acknowledged that the immediate financial fears that gripped the country have passed, but the central bank is not entirely satisfied with the progress made in restoring financial stability. Executive Director and Spokesperson HusneAraShikha addressed the media on January 7, stating that while some positive steps have been taken, the financial sector has ...more

The financial institutions sector in Bangladesh is facing a crisis of unprecedented proportions, with a staggering 36% of all loans now in default, according to a recent report from Bangladesh Bank. The distress is particularly severe among non-banking financial institutions (NBFIs), some of which are on the brink of collapse, unable to meet their obligations ...more

Small investors in Bangladesh’s capital market have faced significant losses due to the poor performance of companies listed through Initial Public Offerings (IPOs) in recent years. Weak financial health and allegations of share manipulation have compounded investor frustrations, with experts criticising the regulatory body for approving such companies.In 2024, four companies-Best Holdings, NRB Bank Limited, ...more

Paradox of financial instabilityMDs of 5 banks sent on force leaveThe managing directors (MDs) of five banks linked to the controversial S Alam Group are being sent on leave to facilitate international audits. Among them, Syed Wasek Md. Ali, MD of First Security Islami Bank, has already been placed on compulsory leave for three months ...more

The government is facing significant challenges in securing loans from the internal sector to meet its current expenses, primarily due to a decline in revenue collection. With a decrease in revenue, the government has been forced to borrow large amounts from internal sources, with the banking sector being the primary source of this funding. However, ...more

According to Bangladesh Bank data, in the recently concluded 2024 (January-December), the total remittances into the country through legal channels were $26.88 billion. Last year (2023), the total amount of remittances received was $21.92 billion. Accordingly, remittances increased by $4.97 billion in 2024 compared to 2023.Officially recorded remittances to low- and middle-income countries (LMICs) are ...more

Facing sky limit of non-performing loans, capital and provision shortfall -Sonali Bank PLC has claimed a record-breaking operating profit of Tk 5,634 crore for the year 2024, marking an increase of Tk 1,788 crore compared to the previous year. The bank’s Managing Director, Shawkat Ali Khan, shared this milestone during a press conference at the ...more

Bills and bonds facilitated to attain higher profit -Mahbubur RahmanDespite inflation, my bank gained record profit -Masrur ArefinHis bank managed to secure profit -Mohammad AliWhile inflation remains a persistent challenge in Bangladesh, many of the country’s banks have reported significant increases in operating profits, raising questions about the effectiveness of the central bank’s policy measures. The ...more